A Crypto trader predicts that unless the overall Crypto Market Volatility capitalization of altcoins increases by about 16% from where it is now, the euphoric altcoin season will not start, and volatility will persist.
In a post on December 28th, Crypto Market Volatility Trades predicted that the “euphoria” or “mania” phase would begin once the TOTAL3 ($93,759 for Bitcoin and $3,357.65 for Ether) surpassed its all-time high of $1.13 trillion in 2021 and entered the price discovery phase.
Crypto Market Volatility and Expert Insights
According to data from TradingView, the TOTAL3 is $962.78 billion as of publication. Its growth from January 1st is about 91.45%. According to Daan, the market will remain volatile for as long as it trades inside the $840B to $1.1T range. A TOTAL3 below $800 billion would make him “a little more cautious, he said. Market watchers think that traders are now more focused on the short term, which has increased volatility in the cryptocurrency industry as a whole.
Syncracy Capital co-founder Daniel Cheung claimed in a post on December 28th that everyone suddenly thought they were George Soros and started watching the hourly charts all the time to time their entries and exits and play about with leverage. According to Cheung, this is why crypto tokens’ breakouts have not been as fast as prior cycles.
Top Gainers Bitget Virtual Pudgy Penguins
Bitget Token (BGB), Virtual Protocol (VIRTUAL), and Pudgy Penguins (PENGU) are the top three cryptocurrencies in terms of gain percentage among the top 100, according to statistics from CoinMarketCap over the previous seven days. Bitget Token’s growth is 80.65%, Virtuals Protocol’s is 42.30%, and Pudgy Penguins’ is 31.63%.
At the same time, traders are increasingly of the opinion that it might be time to shift their accumulation strategy to altcoins, as Bitcoin’s dominance has risen to about 60% despite a price stall in the final days of 2024. Pseudonymous cryptocurrency trader Dyme stated in an X post from December 27 that altcoins now provide a considerably better R/R [risk/reward] profile than Bitcoin.
Final Thoughts
Crypto Market Volatility is still quite unpredictable, with traders divided over whether to focus on short-term tactics or prepare for a possible “mania” phase for altcoins. Experts believe that the market capitalization of altcoins has to expand before a more euphoric phase can be triggered significantly; nevertheless, volatility is expected to persist until then. Traders are reevaluating their strategy due to the significant gains made by altcoins such as Bitget Token, Virtual Protocol, and Pudgy Penguins, despite Bitcoin’s supremacy. The market is anticipated to remain volatile in the coming months as more and more investors look beyond Bitcoin for greater risk/reward prospects, thanks to the increasing trend towards altcoins.
FAQs
What is the current market capitalization of the total cryptocurrency market?
As of publication, the total market capitalization (TOTAL3) stands at $962.78 billion, with a growth of about 91.45% since January 1st.
What market range will keep volatility high, according to experts?
Experts predict that the market will remain volatile as long as it trades within the $840 billion to $1.1 trillion range for TOTAL3.
Why have crypto tokens not seen fast breakouts recently?
Syncracy Capital co-founder Daniel Cheung suggests that focusing on short-term strategies and leverage trading has slowed the breakouts, with traders often watching hourly charts for timing entries and exits.
Which altcoins are currently seeing the highest gains?
The top gainers among the top 100 cryptocurrencies are Bitget Token (BGB) with an 80.65% increase, Virtual Protocol (VIRTUAL) with 42.30%, and Pudgy Penguins (PENGU) with 31.63%.
